A.  Accounting Convention
 
 The accounts are prepared on accrual basis under the historical cost
 convention in accordance with the provisions of the Companies Act, 1956
 and mandatory accounting standards issued by the Companies Accounting
 Standards Rules, 2006 except otherwise stated.
 
 B.  Fixed Assets
 
 Fixed assets are stated at cost less accumulated depreciation. The cost
 represents the cost of acquisition inclusive of duties, taxes,
 incidental expenses, erection / commissioning expenses and interest
 etc. upto the date the assets is put to use.
 
 The assets are assessed for possible impairment at Balance Sheet dates
 based on external and internal sources of information. Impairment of
 losses if any are recognised as an expense in the Profit & Loss
 Account.
 
 Software expected to provide future enduring economic benefits is
 stated at cost less amortization.
 
 All up gradation / enhancements are charged off as revenue expenditure
 unless they bring significant additional benefits.
 
 C.  Depreciation/Amortisation
 
 i) Depreciation is provided at the rates specified in the schedule XIV
 to the Companies Act, 1956, in respect of the fixed assets at the
 factory in Uluberia on Straight Line Method and on remaining assets on
 Written Down Value Method. However, depreciation on Factory Shed &
 Tubewell located at the factory at Liluah has been provided @ 13.91%
 (WDV) & Depreciation on Factory Shed located at Uluberia has been
 provided @ 4.75% (SLM) which is not lower than the depreciation
 stipulated in Schedule XIV of the Companies Act, 1956.
 
 ii) Depreciation on fixed assets added / disposed off during the year
 is provided on prorata basis.
 
 iii) Assets costing less than or equal to Rs.5,000/- are fully charged
 to revenue in the year of purchase.
 
 iv) Intangible Assets
 
 Computer Software is normally amortised over its useful life of 3 years
 as estimated by the management.
 
 Computer Software acquired but not found suitable is fully amortised in
 the year of acquisition.
 
 Licenses representing right to use are amortised over a period of 3
 years.
 
 D.  Investments
 
 Long term investments are carried at cost less provisions for permanent
 diminution in value of such investments.
 
 E.  Inventories
 
 i) Raw material, Consumable stores, Spares, Power & Fuels and Packing
 Materials are valued at cost on FIFO basis. Inventories of Rejected/
 Scrapped finished goods are treated as raw materials and valued at
 current Market Price.
 
 ii) Finished goods are valued at cost or net realisable value whichever
 is lower. Cost is determined on average cost basis including
 proportionate fixed manufacturing overheads based on actual capacity.
 
 F.  Foreign Currency Transaction (other than for Fixed Assets)
 
 Export Sales in Foreign Currency are accounted at the Exchange rates
 prevailing on the date of negotiation of export documents by bank or at
 the exchange rates under the related forward exchange contracts.
 Receivables & Payables not covered by forward exchange contracts are
 translated at year end exchange rates and the Profit / Loss so
 determined and also the realised exchange gains/ losses are recognised
 in Profit / Loss Account.
 
 G.  Cenvat
 
 Excise Duty and Service Tax credit on purchase of Raw Materials,
 Consumables and Capital Goods and on services received are deducted
 from the cost of such materials, capital goods and services.
 
 H.  Value Added Tax
 
 Input tax credit on purchase of Raw Materials, Consumables and Capital
 Goods are deducted from the cost of such materials and capital goods.
 
 I.  Export Benefit
 
 Export benefits under Duty Entitlement Pass Book scheme,based on
 shipment date, are accounted when there is no reasonable doubt of
 collection.
 
 J.  Gratuity & Encashment of Leave
 
 The Gratuity and Encashment of Leave are provided on Actuarial Valuation
 as required under AS-15 (revised).
 
 K.  Bonus
 
 Bonus is provided for on the basis of liability incurred.
 
 L.  Taxes on Income
 
 In case of the Company, provision for tax is made for current and
 deferred taxes. Current Tax is provided on the taxable income using the
 applicable tax rates and tax laws. Deferred tax assets and liabilities
 arising on account of timing differences, which are capable of reversal
 in subsequent period are recognized using tax rates and tax laws, which
 have been enacted or substantially enacted . Deferred tax assets are
 recognized only to the extent that there is a reasonable certainty that
 sufficient future taxable income will be available against which such
 deferred tax assets will be realized. In case of carry forward of
 unabsorbed depreciation and tax losses ,deferred tax assets are
 recognized only if there is virtual certainty that such deferred tax
 assets can be realized against future taxable profits.
 
 M.  Interest and Finance Charges
 
 Interest and Finance Charges charged to Profit & Loss Account include
 interest and bank charges on bank borrowings, short term and long term
 and discounting of inland, foreign L/Cs including those in favour of
 bankers. Interest on negotiation of Purchases/Sale documents are
 charged to revenue account on the basis of recognition of
 Purchases/Sale. Interest attributable to qualifying assets only in
 specific borrowing cases are capitalised as cost of assets.
 
 N.  Purchases
 
 Purchases are inclusive of carriage charged by the suppliers in their
 invoices.
 
 O.  Segment Reporting Policies
 
 The Company is engaged in the manufacture of Castings & M.S. products
 which are subject to the same risk & returns and hence there is one
 primary segment.  The analysis of geographical segments is based on the
 areas in which the Company operates.
 
 P.  Subsidies
 
 Government grants and subsidies are accounted when there is no
 reasonable doubt of collection.